Continuum, Datto Partnership Continues Amid Court Case

Continuum Managed Services and Datto continue to work together on a BDR (backup and disaster recovery) partnership. In fact, the latest Continuum Revive technology leverages Datto's work (I believe). But there has also been some friction. Continuum took Datto to court last year, where the duo in Q4 2012 debated the partnership's deliverables. Both companies tell MSPmentor that they are committed to the relationship and the well-being of MSPs, despite Continuum's civil action case against Datto. Here's the background.

Continuum's goal was to offer a BDR solution to fill a void after Zenith Infotech (a BDR and private cloud specialist) sold Continuum (an RMM and NOC specialist, formerly called Zenith RMM) to Summit Partners in September 2011.

Datto's goal was to gain new revenue streams, and the partnership could give Datto instant reach and mind share with Continuum's large installed base of MSPs.

But somewhere along the way, the vendors did not see eye to eye on the partnership's specific deliverables.

The Case

Sometime around September or October 2012, Continuum took Datto to court, according to this case document sent to MSPmentor by multiple MSPs who requested a status update on the case. My best attempt to summarize the document goes something like this:

On Nov. 1, 2012, an interim court order directed Datto to deliver Continuum a "commercially effective" solution that reimages hardware devices currently in use in the marketplace.

A judge in December 2012 sided with Continuum, and ordered Datto to deliver a GUI-based tool (though it didn't necessarily have to be the actual GenISIS offering) no later than December 17, 2012.

To the best of my knowledge, Datto has delivered that GUI tool, and I believe the tool provides the basis for Continuum's recently launched Revive technology. (If I learn otherwise I will update this article accordingly.)

In phone conversations with MSPmentor today, both sides put their best foot forward.

Michael George, president of Continuum, said: "We do have a good, functioning business relationship." Referring to the court case Continuum filed against Datto, George said: "It's not a place to fight. It's a place to figure out who's right and wrong" and to march forward with the right solutions and outcomes from there. When someone is in breach of contract, George added, Continuum has the resources to pursue a rightful outcome.

Dana Prestigiacomo, Datto's VP of marketing, said: "We still have a relationship between the two companies, and we’re working hard to make sure it remains a good relationship." Datto declined to comment about details of the case.

MSPmentor will continue to check in with both companies to monitor the partnership and any potential updates.